Waikiki's Extreme Makeover

It’s time to bid aloha to the old way of selling Waikiki. The
iconic two-square-mile stretch of South Oahu has dramatically
reinvented itself. And, industry officials across the board are
urging travel agents to set aside old tools for promoting Waikiki
and begin again. Simply put, the best way to pitch Waikiki is a new
way.

The changes already in place in Waikiki and those in the works
are more than just a breath of fresh air. Think of them as
restorative trade winds, filling the destination with unprecedented
energy and sales appeal. Once- narrow streets, crowded sidewalks
and tall concrete slabs are giving way to more palms, parks and
ocean views, evoking a Hawaiian sense of place from one end of the
strip to the other. Dog-eared accommodations are getting dolled up,
and Waikiki Beach is enhancing its international cachet thanks to
newer, wider strands of sand.

Improvements to the beach and more hotels with beach access are
two huge positives, according to agents responding to a TravelAge
West survey on selling Waikiki. Even longtime specialists whose
clients return year after year are enthusiastic about having
something new to sell. Another enhancement seen as key: increased
dining options in an area known for overcrowded restaurants and
long wait times.

Eager to tutor travel agents about Waikiki’s turning tide, the
Hawaii Visitors and Convention Bureau (HVCB) is launching a major
marketing campaign to agents this spring, followed by a consumer
campaign in the fall. As agents map out an agenda, they’ll do well
to take a cue from HVCB’s strategic marketing plan for Waikiki
2007-2009.

“Waikiki is not a typical beach vacation, nor is it an urban
adventure,” it states. “Waikiki is what happens when the modern
world meets the ancient spirit, to reinvent and influence each
other.”

HVCB senior vice president of marketing Jay Talwar adds:
“Waikiki is such a strong brand that everyone has an image of it,
whether it’s accurate or not. We’re asking people to look at
Waikiki again, because it’s a whole new destination.”

According to our survey responses, agents have been keeping up
to date on the changes to Waikiki primarily through magazine
articles, followed by the Oahu Visitors Bureau Web site. The OVB
has created a new Waikiki-specific training module for HVCB’s
Hawaii Destination Specialist Web site. It’s also providing Waikiki
Webinar presentations to wholesaler partners.

“Given the depth of Waikiki’s new personality, character,
product and value, agents can’t afford not to take a closer look at
it with a new perspective,” said OVB travel industry sales director
Stacey Alford. “In today’s environment where the consumer expects
you to know more than they do, agents must speak to Waikiki’s
newness from an insider perspective.”

So, what do agents need to know to have that inside line? For
starters, keep in mind that additional news about Waikiki is
breaking faster than you can say “Kalakaua Avenue.” In the
meantime, here’s a look at projects that are currently changing
Waikiki and the way agents sell it.

Major Waikiki Projects

Open, airy and pedestrian-friendly, Beach Walk, Outrigger
Enterprises’ $535 million eight-acre master-planned Waikiki oasis
encompasses five resorts and 47 dining and retail tenants. Several
hotels, stores and restaurants are up and running, with more on the
way over the next three months.

“We have been conducting literally hundreds of site inspections
of our new products in Waikiki,” said Rob Solomon, Outrigger’s
senior vice president of sales and marketing. “We have completed
new product training for hundreds of reservations agents at call
centers for every major Hawaii wholesaler, and for those at our own
call center. We’re offering great rates for agents coming to
Waikiki on their own, and we’re constantly updating sales tools and
fact sheets with the newest information.”

Here’s an incentive for a quick trip to Waikiki: From March
7-11, Waikiki Beach Walk is celebrating its grand opening with
ongoing arts, crafts and entertainment in the area’s open-air
plaza.

Embassy Suites-Waikiki Beach Walk debuted in December as the
brand’s first all-leisure property and Hawaii’s first all-new
all-suite hotel. Two towers in 21 stories feature one- and
two-bedroom units, many with stunning ocean views. Pitch this
property to couples, families, friends and business travelers. It’s
part of the Hilton family, so Unlimited Budget loyalty program
members earn points by booking clients at
HiltonTravelAgent.com.

Outrigger Reef on the Beach remains open during its $100 million
makeover, but wait to send clients here until at least May, when
the first renovated rooms including significantly enlarged
oceanfront suites become available. When completed in 2008, the
hotel will have 631 units and such new amenities as whirlpool baths
in one-bedroom oceanfront suites, VIP pool service, free wireless
Internet access, personalized sit-down check-in and a signature
restaurant by the pool.

Ohana Islander, currently a 280-room budget property, will
likely be redeveloped into a boutique hotel this year. Parent
company Outrigger hopes to announce the details within the next two
months, said Solomon. Through May 31, clients can stay there for
$99 per night including two coupons to Starbucks. Wyndham Waikiki
Beach Walk, open since Nov. 1, is the $54 million redo of the
former Ohana Reef Towers hotel. The 195-unit property lavishes
guests with amenities, but clients can only stay there if they
belong to Wyndham’s vacation ownership program.

Trump International Hotel and Tower-Waikiki Beach Walk, like all
of The Donald’s projects, is expected to make a splash. When
completed in fall 2009, the five-star 464-unit 350-foot
hotel-condominium tower will mark the final stage of Waikiki Beach
Walk. It promises luxuries like cabanas with tropical landscaping
and a private fitness center and spa. Reserve this property for
VIPs, high-spenders and clients who want a piece of the action.

Starwood Hotels and Resorts just announced a $400 million master
plan to renovate and rebrand its four Waikiki properties.

“This transformation will help travel agents send new customers
to Waikiki and give them a choice of deluxe, upscale, upper-upscale
and luxury experiences,” said Cheryl Williams, Starwood Hawaii’s
regional sales and marketing vice president. “Agents can stay on
top of our news by signing up for our planned education and
awareness activities, including fams.”

Sheraton Waikiki is currently wrapping up a two-year guestroom
renovation of its 1,400 rooms. By 2009, expect a new porte cochere,
lobby and check-in area, upgrades to the retail area and public
spaces and more beachfront food and beverage offerings. Plans call
for the creation of a world-class fantasy pool and unique cultural
programs like a Beach Boy and Girl program for children. The Royal
Hawaiian, the 1927 Pink Palace, is eyeing 2008 for its revival,
beginning with an enhanced entrance, lobby and retail areas. In the
main building, clients will notice upgrades to 350 guestrooms;
improvements to the pool deck and beach; expansion of the spa; and
updates to the hotel’s Surf Room restaurant, Monarch Room and Mai
Tai Bar.

Sheraton Moana-Surfrider, built in 1901, is the oldest hotel in
Waikiki. The property will be rebranded as a Westin in June. Work
has started on renovations to 430 Surfrider Tower rooms, which will
feature Westin Heavenly beds and flat-screen televisions, while a
15,000-square-foot spa moves into the Tower Wing. June ushers in
accommodation and restaurant upgrades in the historic Banyan Wing
and the creation of a Westin Kids Club and Beach Club.

Sheraton Princess Kaiulani’s future is uncertain, but whatever
happens will begin in 2009. According to officials, Starwood might
reconstruct the hotel, demolishing the Princess Wing, Kaiulani Wing
and pool area to make way for a new 240 two-bedroom unit timeshare
tower. And, the existing Ainahau Tower will undergo its own major
renovations.

Hilton Hawaiian Village is spending $250 million to build the
38-story Grand Waikikian timeshare tower; upgrade its Rainbow Tower
loading dock, Village Green event venue and Tapa Tower rooms; and
rejuvenate the Duke Kahanamoku Lagoon, all by the end of 2008.

“When completed, the lagoon will be one of the largest
ocean-water swimming spots in a resort destination,” said Hilton
Hawaii sales and marketing vice president Jon Conching.

Agents logging on to HiltonHawaiiUniversity.com, a Web-based
tutorial, can study up on the 22-acre resort and Waikiki as a
whole.

Part of Outrigger Enterprises, Ohana Hotels and Resorts, has
been repositioned as a mid-market leisure product. This year’s
renovations are targeting the main tower of Ohana Waikiki Malia and
the recently acquired Waikiki Beachcomber. Agents should take
advantage of such new sales tools as the Ohana Waikiki Connection,
giving guests free amenities like unlimited rides aboard the
Waikiki Trolley; and the Hookipa Host program, where local
consultants share insider tips for seeing the real Hawaii.

The Ilikai’s renovation, starting in 2007, is adding a
full-service spa and injecting 343 rooms with a bold and modern
design.

“One of my objectives is to further strengthen relationships
with our industry partners while uncovering new relationships,”
said sales and marketing director Maydene Simmons.

Since it’s on the edge of Waikiki near the Hawaii Convention
Center and downtown, keep the Ilikai in mind for business and group
markets alongside leisure travelers.

Waikiki Parc, fresh from a top-to-bottom renovation, is adopting
a chic attitude to reel in the 30- to 50-year-old traveler.
Promising not just a hotel but an experience, the 297-room property
is promoting its ideal location adjacent to Waikiki Beach Walk and
the beach. Although clients get a reduced rate of $150 per night
for a deluxe room through May 31, food-lovers should wait to visit
until the hotel’s unveiling of Nobu Waikiki, brainchild of
world-famous chef Nobuyuki Matsuhisa.

Aqua Hotels & Resorts, the condotel champ, has spent $26
million upgrading its Waikiki properties, with $8 million earmarked
for this year.

“Aqua will continue to be part of Waikiki’s rejuvenation
throughout 2007 by renovating and rebranding at least three
hotels,” said Aqua marketing vice president Beth Churchill.

On the travel specialist portion of its Web site, take note of
such new initiatives as printable property brochures for clients.
Now is a good time to book an Aqua fam, which comes with a meal and
beach backpack, and provides limo service between its 10 Waikiki
properties for fams of six agents or more.

Royal Hawaiian Shopping Center, scheduled for a mid-2007
completion of its $84 million reconstruction, features Hawaii’s
largest concentration of luxury flagship retailers. At the same
time, its reinvention pays tribute to island heritage, from the
uniquely Hawaiian products at its Hilo Hattie’s flagship store, to
the ethnobotanical gardens and cultural classes in its Royal Grove,
one of the largest open spaces in Waikiki.

“The center is the only one of its kind to offer four levels and
three city blocks of shopping, dining and entertainment options
within walking distance from hotels,” said center spokeswoman
Rosalind Schurgin. “We’ll make sure mainland travel agents get that
message through e-mails, advertising, collateral and industry
partnerships.”

Beach widening began in late 2006, when state workers pumped
sand off the ocean floor a half-mile out to sea, then spread it out
on eroded Kuhio Beach, part of Waikiki’s famous strand. State
officials are high-fiving each other over the positive results and
the relatively low $475,000 price tag. Plus, beach widening was a
very strong positive to agents, according to our survey.

“Work on the beach will most affect my bookings,” said a typical
respondent, “since the beach is the main reason people go to Hawaii
in the first place.”

More Than Just Construction

In addition to all the building sites and renovations going on,
Waikiki is solidifying its customer base, and agents are well
advised to get up to speed on Waikiki’s current vibe. The HVCB’s
Talwar recommends tapping Gen-X and younger Boomer consumers with
above-average incomes.

“There’s an attitude among the current generation that travel is
a part of their lifestyle,” he said. “Waikiki is a fusion beach
resort at once classic and contemporary, focusing on entertainment,
cuisine, shopping and activities, all of which are great selling
points for agents to pitch.”

Other potential Waikiki clients are travelers who enjoy city
breaks; people with an interest in arts, culture and fashion;
travelers drawn toward spontaneity and variety; those eager for
pampering; clients who like sampling different cultures; and
visitors seeking a balance between relaxation and excitement.

From online information to fam trips, supplier programs stand
ready to help travel agents familiarize themselves with the nuts
and bolts of Waikiki. But, said Alford, they must act fast.

“Agents need to take a proactive role in exhausting
opportunities to get reacquainted with Waikiki, as if it were a
brand-new destination,” she said. “Agents with a quest to
specialize in Waikiki can capitalize on the timing and momentum of
this great success story.”

Will selling the new Waikiki increase the number of success
stories for agents? That remains to be seen. The majority of agents
responding to the TravelAge West survey said their clients were
interested in “family travel,” and in seeing Waikiki become “more
Hawaiian.” More than one expressed concern that the “upscale”
transformation of Waikiki would leave out those clients with
moderate budgets.

On the other hand, the agents also indicated that by a large
percentage, clients who visit Waikiki have every intention of
returning. If all goes as planned, the new Waikiki will only
increase those positive client-satisfaction numbers.

“If all this work is done in the name of upgrading, then fine.
In fact, great!” said one agent in our survey. “If it means high
density, overcrowding and more expensive parking, then I think
everyone will be against it. Any improvements of amenities,
accommodations and services for the visitor will only enhance the
desire and beauty of Waikiki.”

ESPERT ADVICE

Hawaii wholesalers weigh in with tips for selling Waikiki.

Amy Terada, vice president of marketing, Pleasant
Holidays: “Agents should look in their local markets for
opportunities that tie into Waikiki. For instance, Waikiki features
a long list of new shops and restaurants. Agents may have a similar
establishment in their own backyard and a joint promotion when
launched properly and to the right target market could result in
new business.”

Wil Eichorn, product manager, All About Hawaii:
“Teaming with OVB, we are promoting the island as a whole,
packaging Waikiki hotels with Oahu activities. With its new
product, Waikiki will attract curious repeat visitors and upper-end
clients, but agents should remember that certain segments of
travelers still prefer the laid-back neighbor island experience of
Kauai, Maui and the Big Island.”

Sandy Babin, vice president of marketing, Apple
Vacations: “As travel agents promote multi-island
packages, they should remind their clients that extra days in
Waikiki can rekindle their love of the area. Waikiki has found a
way to take a standard destination and make it upscale and
cosmopolitan without losing any of the old Hawaii tradition and
spirit of aloha.”

Ron Letterman, president, Classic Vacations:
“Waikiki isn’t a tropical resort. We’ve always billed it as a city
resort, and it’s good to pitch it to clients who are really
interested in lots of activities and high-end shopping. You’d have
to travel far and wide to find the same collection of high-end
stores as they have in Waikiki.”